NYSE : PSO
Pearson plc — Financial statements
Communication Services · Publishing · United Kingdom
Last price 17.37 USD (Oct 30, 2026, 4:00 PM EDT) · Market cap 10.47B
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Financial statements
Pearson plc (PSO) reported revenue of 3.63B GBP (TTM). Five years of income statement, balance sheet, cash flow and ratios below.
Income statement
Fiscal year January - December; amounts in GBP.
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|---|
| Revenue | 3.63B | 3.58B | 3.55B | 3.67B | 3.84B | 3.43B |
| Cost of Revenue | 1.74B | 1.72B | 1.74B | 1.84B | 2.05B | 1.75B |
| Gross Profit | 1.89B | 1.86B | 1.81B | 1.83B | 1.79B | 1.68B |
| Selling, General & Admin | 1.36B | 1.35B | 1.24B | 1.28B | 1.54B | 1.38B |
| Other Operating Expenses | 13.00M | 4.00M | 1.00M | -47.00M | -100.00M | |
| Operating Expenses | 1.38B | 1.35B | 1.24B | 1.29B | 1.50B | 1.28B |
| Operating Income | 513.00M | 505.00M | 567.00M | 546.00M | 299.00M | 400.00M |
| Interest Expense | -85.00M | -75.00M | -79.00M | -61.00M | -69.00M | -68.00M |
| Interest & Investment Income | 20.00M | 17.00M | 34.00M | 24.00M | 58.00M | 11.00M |
| Earnings From Equity Investments | 3.00M | 1.00M | 2.00M | 1.00M | 1.00M | 1.00M |
| Currency Exchange Gain (Loss) | -8.00M | -7.00M | -3.00M | 3.00M | 1.00M | 1.00M |
| Other Non Operating Income (Expenses) | 1.00M | -3.00M | 7.00M | -10.00M | 25.00M | 20.00M |
| EBT Excluding Unusual Items | 444.00M | 438.00M | 528.00M | 503.00M | 315.00M | 365.00M |
| Merger & Restructuring Charges | -7.00M | -7.00M | -7.00M | -23.00M | -20.00M | -214.00M |
| Gain (Loss) on Sale of Investments | -26.00M | -7.00M | -11.00M | 13.00M | 28.00M | 20.00M |
| Gain (Loss) on Sale of Assets | 8.00M | 8.00M | 6.00M | |||
| Asset Writedown | 25.00M | 25.00M | ||||
| Pretax Income | 444.00M | 457.00M | 510.00M | 493.00M | 323.00M | 177.00M |
| Income Tax Expense | 125.00M | 121.00M | 75.00M | 113.00M | 79.00M | -1.00M |
| Earnings From Continuing Operations | 319.00M | 336.00M | 435.00M | 380.00M | 244.00M | 178.00M |
| Net Income to Company | 319.00M | 336.00M | 435.00M | 380.00M | 244.00M | 178.00M |
| Minority Interest in Earnings | -1.00M | -1.00M | -2.00M | -2.00M | -1.00M | |
| Net Income | 319.00M | 335.00M | 434.00M | 378.00M | 242.00M | 177.00M |
| Net Income to Common | 319.00M | 335.00M | 434.00M | 378.00M | 242.00M | 177.00M |
| Shares Outstanding (Basic) | 628.70M | 651.30M | 673.00M | 711.50M | 738.10M | 754.10M |
| Shares Outstanding (Diluted) | 636.15M | 660.30M | 684.00M | 717.30M | 742.00M | 759.10M |
| EPS (Basic) | 0.51 | 0.51 | 0.64 | 0.53 | 0.33 | 0.23 |
| EPS (Diluted) | 0.50 | 0.51 | 0.64 | 0.53 | 0.33 | 0.23 |
| Free Cash Flow | 765.00M | 627.00M | 594.00M | 495.00M | 304.00M | 262.00M |
| Free Cash Flow Per Share | 1.20 | 0.95 | 0.87 | 0.69 | 0.41 | 0.34 |
| Dividend Per Share | 0.26 | 0.25 | 0.24 | 0.23 | 0.21 | 0.20 |
| Gross Margin | 52.04% | 52.00% | 50.98% | 49.95% | 46.73% | 49.04% |
| Operating Margin | 14.12% | 14.12% | 15.96% | 14.86% | 7.78% | 11.67% |
| Profit Margin | 8.78% | 9.37% | 12.22% | 10.29% | 6.30% | 5.16% |
| Free Cash Flow Margin | 21.05% | 17.53% | 16.72% | 13.47% | 7.92% | 7.64% |
| EBITDA | 604.00M | 586.00M | 649.00M | 641.00M | 398.00M | 496.00M |
| EBITDA Margin | 16.62% | 16.38% | 18.27% | 17.45% | 10.36% | 14.47% |
| D&A For EBITDA | 91.00M | 81.00M | 82.00M | 95.00M | 99.00M | 96.00M |
| EBIT | 513.00M | 505.00M | 567.00M | 546.00M | 299.00M | 400.00M |
| EBIT Margin | 14.12% | 14.12% | 15.96% | 14.86% | 7.78% | 11.67% |
| Effective Tax Rate | 28.15% | 26.48% | 14.71% | 22.92% | 24.46% | |
| Advertising Expenses | 126.00M | 113.00M | 146.00M | 268.00M |
Balance sheet
Fiscal year January - December; amounts in GBP.
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|---|
| Cash & Equivalents | 339.00M | 333.00M | 543.00M | 312.00M | 558.00M | 937.00M |
| Cash & Short-Term Investments | 339.00M | 333.00M | 543.00M | 312.00M | 558.00M | 937.00M |
| Accounts Receivable | 1.02B | 758.00M | 695.00M | 712.00M | 856.00M | 882.00M |
| Other Receivables | 12.00M | 15.00M | 103.00M | 15.00M | 91.00M | 201.00M |
| Receivables | 1.03B | 773.00M | 798.00M | 727.00M | 947.00M | 1.08B |
| Inventory | 72.00M | 66.00M | 74.00M | 91.00M | 105.00M | 98.00M |
| Prepaid Expenses | 324.00M | 335.00M | 338.00M | 200.00M | 198.00M | |
| Other Current Assets | 840.00M | 824.00M | 978.00M | 965.00M | 1.01B | 905.00M |
| Total Current Assets | 2.28B | 2.32B | 2.73B | 2.43B | 2.82B | 3.22B |
| Property, Plant & Equipment | 221.00M | 210.00M | 216.00M | 217.00M | 250.00M | 366.00M |
| Long-Term Investments | 110.00M | 133.00M | 153.00M | 165.00M | 158.00M | 137.00M |
| Goodwill | 2.45B | 2.42B | 2.44B | 2.43B | 2.48B | 2.15B |
| Other Intangible Assets | 567.00M | 584.00M | 589.00M | 657.00M | 697.00M | 624.00M |
| Long-Term Accounts Receivable | 97.00M | 55.00M | 73.00M | 83.00M | 107.00M | 102.00M |
| Long-Term Deferred Tax Assets | 33.00M | 58.00M | 52.00M | 35.00M | 57.00M | 57.00M |
| Other Long-Term Assets | 614.00M | 673.00M | 644.00M | 703.00M | 757.00M | 691.00M |
| Total Assets | 6.37B | 6.46B | 6.89B | 6.73B | 7.32B | 7.34B |
| Accounts Payable | 1.03B | 281.00M | 273.00M | 317.00M | 348.00M | 351.00M |
| Accrued Expenses | 415.00M | 425.00M | 632.00M | 513.00M | 492.00M | |
| Short-Term Debt | 3.00M | 15.00M | ||||
| Current Portion of Long-Term Debt | 8.00M | 1.00M | 304.00M | 5.00M | 11.00M | 91.00M |
| Current Portion of Leases | 63.00M | 62.00M | 65.00M | 64.00M | 71.00M | 68.00M |
| Current Income Taxes Payable | 33.00M | 47.00M | 32.00M | 32.00M | 43.00M | 125.00M |
| Current Unearned Revenue | 328.00M | 329.00M | 295.00M | 340.00M | 330.00M | |
| Other Current Liabilities | 8.00M | 27.00M | 50.00M | 56.00M | 138.00M | 123.00M |
| Total Current Liabilities | 1.14B | 1.16B | 1.48B | 1.40B | 1.48B | 1.58B |
| Long-Term Debt | 1.30B | 1.00B | 709.00M | 649.00M | 664.00M | 710.00M |
| Long-Term Leases | 393.00M | 416.00M | 452.00M | 483.00M | 534.00M | 565.00M |
| Long-Term Unearned Revenue | 61.00M | 62.00M | 73.00M | 60.00M | 56.00M | |
| Pension & Post-Retirement Benefits | 35.00M | 36.00M | 41.00M | 44.00M | 61.00M | 66.00M |
| Long-Term Deferred Tax Liabilities | 79.00M | 89.00M | 63.00M | 46.00M | 37.00M | 40.00M |
| Other Long-Term Liabilities | 71.00M | 27.00M | 34.00M | 40.00M | 74.00M | 46.00M |
| Total Liabilities | 3.01B | 2.79B | 2.84B | 2.74B | 2.91B | 3.06B |
| Common Stock | 149.00M | 158.00M | 166.00M | 174.00M | 179.00M | 189.00M |
| Additional Paid-In Capital | 2.66B | 2.66B | 2.65B | 2.64B | 2.63B | 2.63B |
| Retained Earnings | 295.00M | 629.00M | 827.00M | 745.00M | 881.00M | 1.07B |
| Treasury Stock | -29.00M | -9.00M | -7.00M | -19.00M | -15.00M | -12.00M |
| Comprehensive Income & Other | 267.00M | 212.00M | 403.00M | 432.00M | 724.00M | 400.00M |
| Total Common Equity | 3.34B | 3.65B | 4.04B | 3.97B | 4.40B | 4.27B |
| Minority Interest | 16.00M | 15.00M | 15.00M | 14.00M | 13.00M | 10.00M |
| Shareholders' Equity | 3.36B | 3.66B | 4.05B | 3.99B | 4.42B | 4.28B |
| Total Liabilities & Equity | 6.37B | 6.46B | 6.89B | 6.73B | 7.32B | 7.34B |
| Total Debt | 1.76B | 1.48B | 1.53B | 1.20B | 1.29B | 1.43B |
| Net Cash (Debt) | -1.42B | -1.15B | -987.00M | -892.00M | -737.00M | -497.00M |
| Net Cash Per Share | -2.24 | -1.74 | -1.44 | -1.24 | -0.99 | -0.65 |
| Filing Date Shares Outstanding | 616.30M | 635.09M | 665.59M | 695.14M | 713.87M | 755.23M |
| Total Common Shares Outstanding | 616.30M | 635.09M | 665.59M | 695.14M | 713.87M | 755.23M |
| Working Capital | 1.14B | 1.16B | 1.25B | 1.03B | 1.34B | 1.64B |
| Book Value Per Share | 5.42 | 5.74 | 6.07 | 5.72 | 6.17 | 5.65 |
| Tangible Book Value | 324.00M | 639.00M | 1.01B | 883.00M | 1.23B | 1.50B |
| Tangible Book Value Per Share | 0.53 | 1.01 | 1.52 | 1.27 | 1.72 | 1.99 |
| Land | 149.00M | 151.00M | 165.00M | 178.00M | 226.00M | |
| Machinery | 179.00M | 179.00M | 237.00M | 257.00M | 250.00M | |
| Construction In Progress | 10.00M | 9.00M | 9.00M | 22.00M | 29.00M |
Cash flow statement
Fiscal year January - December; amounts in GBP.
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|---|
| Net Income | 319.00M | 335.00M | 434.00M | 378.00M | 242.00M | 177.00M |
| Depreciation & Amortization | 125.00M | 115.00M | 117.00M | 134.00M | 144.00M | 145.00M |
| Other Amortization | 378.00M | 388.00M | 404.00M | 403.00M | 413.00M | 396.00M |
| Loss (Gain) From Sale of Assets | 9.00M | 5.00M | 13.00M | -24.00M | -63.00M | |
| Asset Writedown & Restructuring Costs | 71.00M | 71.00M | 5.00M | 6.00M | 61.00M | 146.00M |
| Stock-Based Compensation | 39.00M | 39.00M | 44.00M | 40.00M | 35.00M | 28.00M |
| Other Operating Activities | -236.00M | -209.00M | -329.00M | -353.00M | -475.00M | -505.00M |
| Change in Accounts Receivable | 9.00M | -104.00M | 32.00M | -24.00M | 33.00M | -71.00M |
| Change in Inventory | 1.00M | 5.00M | 15.00M | 9.00M | -34.00M | 22.00M |
| Change in Accounts Payable | 112.00M | 35.00M | -99.00M | -20.00M | -84.00M | 37.00M |
| Change in Other Net Operating Assets | -21.00M | -19.00M | -1.00M | -61.00M | 50.00M | 14.00M |
| Operating Cash Flow | 806.00M | 656.00M | 627.00M | 525.00M | 361.00M | 326.00M |
| Capital Expenditures | -41.00M | -29.00M | -33.00M | -30.00M | -57.00M | -64.00M |
| Sale of Property, Plant & Equipment | 3.00M | 6.00M | 5.00M | 14.00M | ||
| Cash Acquisitions | -167.00M | -167.00M | -39.00M | -171.00M | -228.00M | -55.00M |
| Divestitures | 1.00M | 8.00M | -7.00M | -38.00M | 333.00M | 83.00M |
| Sale (Purchase) of Intangibles | -113.00M | -105.00M | -91.00M | -96.00M | -90.00M | -112.00M |
| Investment in Securities | -1.00M | -5.00M | -7.00M | -6.00M | 34.00M | |
| Other Investing Activities | 20.00M | 34.00M | 22.00M | 20.00M | 23.00M | 13.00M |
| Investing Cash Flow | -282.00M | -243.00M | -131.00M | -301.00M | 13.00M | -80.00M |
| Long-Term Debt Issued | 1.02B | 1.26B | 285.00M | |||
| Long-Term Debt Repaid | -1.05B | -999.00M | -369.00M | -264.00M | -255.00M | |
| Lease Payments | -77.00M | -77.00M | -78.00M | -84.00M | -93.00M | -88.00M |
| Net Debt Issued (Repaid) | 202.00M | -34.00M | 266.00M | -84.00M | -264.00M | -255.00M |
| Issuance of Common Stock | 9.00M | 9.00M | 7.00M | 9.00M | 7.00M | 6.00M |
| Repurchase of Common Stock | -546.00M | -352.00M | -318.00M | -186.00M | -353.00M | -16.00M |
| Common Dividends Paid | -158.00M | -160.00M | -156.00M | -154.00M | -156.00M | -149.00M |
| Other Financing Activities | -56.00M | -72.00M | -40.00M | -35.00M | -38.00M | |
| Financing Cash Flow | -549.00M | -609.00M | -241.00M | -450.00M | -804.00M | -414.00M |
| Foreign Exchange Rate Adjustments | 10.00M | -14.00M | -21.00M | -8.00M | 36.00M | -8.00M |
| Net Cash Flow | -15.00M | -210.00M | 234.00M | -234.00M | -394.00M | -176.00M |
| Free Cash Flow | 765.00M | 627.00M | 594.00M | 495.00M | 304.00M | 262.00M |
| Free Cash Flow Margin | 21.05% | 17.53% | 16.72% | 13.47% | 7.92% | 7.64% |
| Free Cash Flow Per Share | 1.20 | 0.95 | 0.87 | 0.69 | 0.41 | 0.34 |
| Levered Free Cash Flow | 838.50M | 863.75M | 459.00M | 843.12M | 576.75M | 601.50M |
| Unlevered Free Cash Flow | 891.62M | 910.62M | 508.38M | 881.25M | 619.88M | 644.00M |
| Free Cash Flow After Leases | 688.00M | 550.00M | 516.00M | 411.00M | 211.00M | 174.00M |
| Cash Interest Paid | 77.00M | 73.00M | 65.00M | 60.00M | 57.00M | 67.00M |
| Cash Income Tax Paid | 87.00M | 2.00M | 119.00M | 97.00M | 109.00M | 177.00M |
| Change in Working Capital | 101.00M | -83.00M | -53.00M | -96.00M | -35.00M | 2.00M |
Ratios
Fiscal year January - December; amounts in GBP.
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|---|
| Market Capitalization | 10.47B | 8.98B | 10.65B | 8.56B | 8.08B | 6.26B |
| Enterprise Value | 12.40B | 10.56B | 12.33B | 9.94B | 9.25B | 7.36B |
| Last Close Price | 17.37 | 13.69 | 15.39 | 11.47 | 10.24 | 7.45 |
| PE Ratio | 25.85 | 19.93 | 19.60 | 17.77 | 27.71 | 26.10 |
| PS Ratio | 2.17 | 1.87 | 2.40 | 1.83 | 1.75 | 1.35 |
| PB Ratio | 2.35 | 1.82 | 2.10 | 1.68 | 1.52 | 1.08 |
| P/TBV Ratio | 24.35 | 10.45 | 8.40 | 7.61 | 5.47 | 3.08 |
| P/FCF Ratio | 10.20 | 10.65 | 14.32 | 13.57 | 22.06 | 17.63 |
| P/OCF Ratio | 9.68 | 10.18 | 13.57 | 12.79 | 18.58 | 14.17 |
| EV/Sales Ratio | 2.57 | 2.19 | 2.77 | 2.12 | 2.00 | 1.59 |
| EV/EBITDA Ratio | 15.47 | 13.39 | 15.18 | 12.18 | 19.30 | 10.96 |
| EV/EBIT Ratio | 18.21 | 15.54 | 17.37 | 14.30 | 25.69 | 13.59 |
| EV/FCF Ratio | 12.08 | 12.51 | 16.58 | 15.77 | 25.27 | 20.75 |
| Debt / Equity Ratio | 0.52 | 0.41 | 0.38 | 0.30 | 0.29 | 0.34 |
| Debt / EBITDA Ratio | 2.76 | 2.39 | 2.24 | 1.77 | 2.92 | 2.63 |
| Debt / FCF Ratio | 2.30 | 2.37 | 2.58 | 2.43 | 4.26 | 5.47 |
| Net Debt / Equity Ratio | 0.42 | 0.31 | 0.24 | 0.22 | 0.17 | 0.12 |
| Net Debt / EBITDA Ratio | 2.35 | 1.96 | 1.52 | 1.39 | 1.85 | 1.00 |
| Net Debt / FCF Ratio | 1.86 | 1.84 | 1.66 | 1.80 | 2.42 | 1.90 |
| Asset Turnover | 0.58 | 0.54 | 0.52 | 0.52 | 0.52 | 0.46 |
| Inventory Turnover | 24.38 | 24.53 | 21.10 | 18.77 | 20.16 | 15.39 |
| Quick Ratio | 1.20 | 0.95 | 0.91 | 0.74 | 1.02 | 1.28 |
| Current Ratio | 2.00 | 2.00 | 1.85 | 1.73 | 1.91 | 2.04 |
| Return on Equity (ROE) | 9.16% | 8.71% | 10.82% | 9.04% | 5.61% | 4.23% |
| Return on Assets (ROA) | 5.09% | 4.73% | 5.20% | 4.86% | 2.55% | 3.38% |
| Return on Invested Capital (ROIC) | 7.71% | 7.54% | 9.75% | 8.39% | 4.55% | 8.41% |
| Return on Capital Employed (ROCE) | 9.80% | 9.50% | 10.50% | 10.30% | 5.10% | 6.90% |
| Earnings Yield | 3.87% | 5.02% | 5.10% | 5.63% | 3.61% | 3.83% |
| FCF Yield | 9.80% | 9.39% | 6.98% | 7.37% | 4.53% | 5.67% |
| Dividend Yield | 1.99% | 2.40% | 1.88% | 2.35% | 2.29% | 3.35% |
| Payout Ratio | 51.66% | 47.76% | 35.95% | 40.74% | 64.46% | 84.18% |
| Buyback Yield / Dilution | 5.85% | 3.46% | 4.64% | 3.33% | 2.25% | -0.49% |
| Total Shareholder Return | 7.84% | 5.86% | 6.52% | 5.68% | 4.54% | 2.86% |